The Effect of Consumer Learning Behavior on the Rising Bottled Water Consumption
AbstractThis paper examines the impact of consumer learning behavior on the rising bottled water consumption. Consumers are assumed with initial prior beliefs about the distribution of health effect of beverages and update their beliefs using health information in a Baysian manner. We find that the health effect perception for bottled water is much higher than for sugar sweetened soft drinks, which can explain the increase in bottled water consumption over time. According to our findings, health information can promote healthy diet and reduce sugar intake through consumers’ learning behavior. This finding helps policy makers develop more effective obesity control programs.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150217.
Date of creation: 2013
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Consumer learning; Information Economics; Bottled Water; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Institutional and Behavioral Economics; D12; D83;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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